Fair Employment Practices Act

Summary: The Fair Employment Practices Act prohibits the use of consumer credit checks against prospective and current employees for the purpose of making employment decisions.

Based on District of Columbia Bill No. B20-65

SECTION 1. SHORT TITLE

This Act shall be called the “Fair Employment Practices Act.”

SECTION 2. PURPOSE

This law is enacted to protect employees and job applicants from unfair practices by prohibiting the use of credit checks for employment purposes.

SECTION 3. USE OF CREDIT CHECKS PROHIBITED FOR EMPLOYMENT PURPOSES

After section XXX, the following new section XXX shall be inserted:

(A) DEFINITION—In this section:

“Credit check” means a report about a consumer where any information contained in the report bears on the consumer’s creditworthiness, credit standing, or credit capacity.

(B) CREDIT CHECKS PROHIBITED FOR EMPLOYMENT

1. Except as provided in paragraph (3) of this section, a prospective employer or current employer shall not use a credit check or cause a credit check to be procured that is about a job applicant or current employee.

2. The prohibition described in paragraph (1) shall apply even if the consumer consents or otherwise authorizes the procurement or use of a credit check for employment purposes.

3. Notwithstanding the prohibitions set forth in this section, an employer may use a credit check of an employee or job applicant in the following situations:

(a) When the employee or job applicant applies for, or currently holds, employment that requires national security or FDIC clearance;

(b) When the employee or job applicant applies for, or currently holds, employment with a State or local government agency which otherwise requires use of a consumer report;

(c) When the employee or job applicant applies for, or currently holds, a supervisory, managerial, professional, or executive position at a financial institution; or

(d) When otherwise required by law.

SECTION 4. EFFECTIVE DATE

This law shall become effective on July 1, 20XX.

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